General Electric
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| File:GE Logo.svg | |
| Company type | Public (NYSE: GE) |
|---|---|
| Industry | Conglomerate |
| Founded | 1878 |
| Headquarters |  Fairfield, Connecticut,[1] USA |
Key people | Jeff Immelt, Chairman & CEO Keith Sherin, CFO |
| Products | Aircraft Jet Engines Electricity Entertainment Finance Gas Turbine Generation Industrial Automation Lighting Medical Imaging Equipment Medical Software Motors Plastics Railway Locomotives Silicones Wind Turbine |
| Revenue |  $149.702 billion USD (2005)[2] |
| $22,129 (2005)[2] | |
| $16.353 billion USD (2005)[2] | |
| Total assets | 253,452,000,000 United States dollar (2020)  |
Number of employees | ~315,000 (2004) |
| Subsidiaries | GE Commercial Finance GE Industrial GE Infrastructure GE Money GE Healthcare NBC Universal |
| Website | www.ge.com |
The General Electric Company, or GE (NYSE: GE) is a multinational American technology and services conglomerate incorporated in the State of New York.[3]According to the Forbes Global 2000 it is the world's second-largest company.
In the 1960s, aspects of U.S. tax laws and accounting practices led to a rise in the assembly of conglomerates. GE, which was a conglomerate long before the term was coined, is arguably the most successful organization of this type.
History
In 1876, Thomas Alva Edison opened a new laboratory in Menlo Park, New Jersey. Out of the laboratory was to come arguably the most famous invention of all—a successful development of a practical incandescent electric lamp. By 1890, Edison had organized his various businesses into the Edison General Electric Company.
In 1879, Elihu Thomson and Edwin J. Houston formed the rival Thomson-Houston Electric Company. It merged with various companies and was later led by Charles A. Coffin, a former shoe manufacturer from Lynn, Massachusetts. Mergers with competitors and the patent rights owned by each company placed them in dominant positions in the electrical industry. As businesses expanded, it became increasingly difficult for either company to produce complete electrical installations relying solely on their own technology.
In 1892, these two major companies combined, in a merger arranged by financier J. P. Morgan, to form the General Electric Company, with its headquarters in Schenectady, New York.
In 1896, General Electric was one of the original 12 companies listed on the newly-formed Dow Jones Industrial Average and still remains after 110 years.
In 1911 the National Electric Lamp Company (NELA) was dissolved and absorbed into General Electric's existing lighting business. At this time GE established its lighting division headquarters at Nela Park located in East Cleveland, Ohio. Nela Park was the first industrial park in the world, was added to the National Register of Historic Places in 1975, and today still serves as the functional headquarters for GE's lighting business.
The Radio Corporation of America (RCA) was founded by GE and American Telephone & Telegraph (AT&T) in 1919 to further international radio.
General Electric was one of the eight major computer companies through most of the 1960s - with IBM, the largest one, being called "Snow White" followed by the "Seven Dwarfs": Burroughs, NCR, Control Data Corporation, Honeywell, RCA, UNIVAC and GE itself. (There was also Scientific Data Systems, much smaller than the seven dwarfs). GE had an extensive line of general-purpose and special-purpose computers. Among them were the GE 200, GE 400, and GE 600 series general purpose computers, the GE 4010, GE 4020, and GE 4060 real time process control computers, and the Datanet 30 message switching computer. A Datanet 600 computer was designed, but never sold. It has been said that GE got into the computer manufacturing business because in the 1950s they were the largest user of computers outside of the United States federal government. In 1970 GE sold its computer division to Honeywell.
In 1986, GE re-acquired RCA, primarily for the NBC television network. The rest was sold to various companies, including Bertelsmann and Thomson SA.
In 2002, Francisco Partners and Norwest Venture Partners acquired a division of GE called GE Information Systems (GEIS). The new company, named GXS, is based in Gaithersburg, MD. GXS is a leading provider of B2B e-Commerce solutions. GE maintains a minority ownership position in GXS.
In 2004, GE bought Vivendi's television and movie assets and became the third largest media conglomerate in the world. The new company was named NBC Universal. Also in 2004, GE completed the spinoff of most of its mortgage and life insurance assets into an independent company, Genworth Financial, based in Richmond, Virginia.
Genpact, a BPO company established by GE in the late 90's, was formerly known as GE Capital International Services (GECIS). GE hived off 60% stake in GENPACT to a consortium in 2004. GE is still a major client to Genpact getting its services in customer service, finance and analytics.
- For a complete list of acquisitions and divestitures, see General Electric timeline.
Today
GE is an enormous multinational conglomerate headquartered in Fairfield, Connecticut. Its New York headquarters are based in 30 Rockefeller Plaza in Rockefeller Center, known as the GE Building for the prominent GE logo on the building's roof. Through its RCA subsidiary it has been associated with the Center since its construction in the 1930s.
The company describes itself as composed of a number of primary business units or "businesses." Each "business" is itself a vast enterprise, many of which would, even as a standalone company, rank in the Fortune 500. The list of GE businesses varies over time as the result of acquisitions, divestitures and reorganizations. General Electric's tax return is the largest return filed in the United States, spanning approximately 24,000 pages when printed out. Electronically, the files were 237 megabytes. [1]
In 2005, GE launched its "Ecomagination" initiative in an attempt to position itself as a "green" company. Currently the company is one of the biggest players in the wind power industry and also developing new environment friendly products such as hybrid locomotives and photovoltaic cells. The company has also set goals for its subsidiaries to lower their greenhouse gas emissions. [citation needed]
Controversy
GE has faced considerable controversy and legal battles relating to its business operations. This has included numerous legal proceedings relating to environmental pollution.
In 1983, New York State Attorney General Robert Abrams filed suit in Federal District Court to compel GE to pay for the clean-up of what was claimed to be more than 100,000 tons of chemicals dumped from their plant in Waterford.[4]
In 1999, the company agreed to pay $250 million to the United States, Massachusetts, and Connecticut to resolve claims it polluted the Housatonic River with PCBs and other hazardous substances.[5]
GE has also faced criminal action regarding its defense-related operations. GE was convicted in 1990 of defrauding the U.S. Department of Defense, and again in 1992 on charges of corrupt practices in the sale of weaponry to Israel.[6]
GE businesses
- Main article: List of assets owned by General Electric
- GE Commercial Finance
- Capital Solutions
- Corporate Financial Services
- Healthcare Financial Services
- Insurance
- Real Estate
- GE Industrial
- Advanced Materials (Sold to Apollo Managament LLC in Nov 2006, renamed Momentive Performance Materials)
- Consumer & Industrial
- Equipment Services
- GE Fanuc Automation
- Inspection Technologies
- Plastics
- Security
- Sensing
- GE Infrastructure
- Aviation
- Aviation Financial Services
- Energy
- Energy Financial Services
- Oil & Gas
- Transportation Systems (Formerly GE Rail)
- Water
- GE Money also known as GE Consumer Finance[7]
- GE Healthcare
- NBC Universal
- Network
- Films
- Television Stations
- Entertainment Cable
- Television Production
- Sports/ Olympic Games
- Theme Parks
Through these businesses, GE participates in a wide variety of markets including the generation, transmission and distribution of electricity, lighting, industrial automation, medical imaging equipment, motors, railway locomotives, aircraft jet engines, aviation services and materials such as plastics, silicones and abrasives. It was co-founder and is 80% owner (with Vivendi Universal) of NBC Universal, the National Broadcasting Company. Through GE Commercial Finance, GE Consumer Finance, GE Equipment Services, and GE Insurance it offers a range of financial services as well. It has a presence in over 100 countries.
Over half of GE's revenue is derived from financial services, it is arguably a financial company with a manufacturing arm. It is also one of the largest lenders in countries other than the United States, such as Japan. Even though the first wave of conglomerates (such as ITT, Ling-Temco-Vought, Tenneco, etc) fell by the wayside by the mid-1980s, in the late 1990s, another wave (consisting of Westinghouse, Tyco, and others) tried and failed to emulate GE's success.
GE's brand
General Electric has one of the most valuable corporate brands in the world.[8] CEO Jeffrey Immelt had the new brand commissioned in 2004, after he took the reins as chairman, in order to unify all the diversified businesses of GE. The brand included a change of the corporate color palette, small modifications to the GE Logo, a new customized font, called GE Inspira, and a new slogan, "imagination at work" replacing the longtime slogan "we bring good things to life". The new brand requires many headlines to be lowercased and adds visual "white space" to their documents and advertising to promote an open and approachable company. The new brand was designed by Wolff Olins and is used extensively on GE's marketing, literature, and corporate website.
Jeffrey R. Immelt
Born February 19, 1956, Cincinnati, Ohio, Jeff Immelt is the current chairman of the board and chief executive officer of General Electric. He was selected by GE's Board of Directors in 2000 to replace John Francis Welch Jr. (Jack Welch) following his retirement.
Previously, Immelt had headed up GE's Medical Systems division (now known as GE Healthcare) as its President and CEO. He holds an A.B. in Applied Mathematics from Dartmouth College where he was President of his fraternity, Phi Delta Alpha, and an M.B.A. from Harvard Business School. He has been with GE since 1982 and is on the board of two non-profit organizations.
His tenure as Chairman and CEO started off at a time of crisis - he took over the role on September 7, 2001 - just four days before the terrorist attacks on the United States, which killed two employees and cost GE's insurance business $600 million, as well as having an obvious direct effect on the company's Aircraft Engines sector.
Corporate information
In 2004, GE was named number one company for employers and employees on the Forbes 500 Global Player list.
Over the years, GE has received several awards honoring them for their accomplishments, values and reputation:
- In Fortune Magazine's 2005 "Global Most Admired Companies" list, GE ranked first overall. (February 2005)
- In Fortune Magazine's 2006 "America's Most Admired Companies" list, GE ranked first overall. (March 2006)[9]
- GE was named to the Dow Jones Sustainability World Index as one of the world's leaders in environmental, social and economic programs.
- GE ranked ninth on Fortune Magazine's "50 Most Desirable MBA Employers" list. (April 2004)
Superfund sites
General Electric has agreed to pay the Environmental Protection Agency to clean up three superfund sites contaminated with polychlorinated biphenyls (PCBs). The three superfund sites are composed of a 200 mile stretch along the Hudson River, a section of the Housatonic River in Pittsfield, Massachusetts and a transformer facility near Rome, Georgia.
Analyst coverage
- Germanotta, Jeffrey (William Blair & Company, L.L.C.)
- Cornell, Robert (Lehman Brothers)
- Parent, Nicole (Credit Suisse First Boston)
- Dray, Deane (Goldman Sachs)
Financials
See also
- Borazon
- General Electric Theater
- Lexan
- List of assets owned by General Electric
- MOOSE
- Rank and yank
- Ronald Reagan
References
- ^ Our Company; GE website; retrieved December 29, 2006
- ^ a b c "Statement of Earnings". General Electric Company. 2006. Retrieved 2006-12-05.
- ^ Company Information: General Electric, U.S Securities and Exchange Commission
- ^ The Region; G.E. Plant Accused Of Water Pollution", The New York Times, January 21, 1983
- ^ General Electric agrees to $250 Million Settlement to Clean Up PCBs in Housatonic River, Department of Justice news release, October 7, 1999
- ^ Sam Husseini, Felons On The Air: Does GE's Ownership of NBC Violate the Law?, FAIR.ORG, November/December 1994
- ^ GE Money Global Financial Solutions
- ^ "Top 100 Global Brands Scoreboard", BusinessWeek.
- ^ "America's Most Admired Companies 2006", Fortune Magazine, March 6, 2006
External links
- Official site.
- Hotpoint - A Brief Independence
- GXS Official Site - Minority owned by GE
- Official site for GE Appliances, the corporation's leading consumer product
- GE's NBC Universal
- "1,000 Ways it Dont Work" - A multimedia art project exploring GE as an open system of infinite possibility
- HudsonWatch.net -- A Web site dealing with GE's Hudson River/PCB Cleanup and related matters.
- Another Hudson River Controversy Site
- Financial Times article on GE's effort to go green
- GE Appliance Parts
